Seeking Strategic Partners
Depending on the interest shown, Coca-Cola India is planning on divesting a stake in HCCB, which is a wholly owned bottling subsidiary by the company. The plan implemented to ensure proper operation of this is the outsourcing of the bottling division the same way PepsiCo outsourced the bottling to Varun Beverages Ltd thus leading to increased efficiency in key areas.
Potential Investors
The insiders not willing to be named have said that Coca-Cola India has already discussed this issue with four other major Indian business groups. Some of the identified investors who have been targeted include the Bhartia family who owns the Jubilant Group which operates the Domino’s pizza franchise in India and the Burman family who are the promoters of the Dabur company, a leading Indian consumer goods firm. These families are well known to possess sharp business minds besides managing complicated and vast investment profiles.
Investment Opportunity
The proposed deal has a value of nearly one billion US dollars so it is a big investment chance of these notable business tycoons. To achieve its organizational goals and objectives for expansion and sustainable growth, Coca-Cola India plans to attract strategic investors to help HCCB boost its local expertise and business networks.
Aligning with Market Trends
This step is witnessed in a rather focal shift among the food processing companies especially the beverage manufacturers where outsourcing of bottling activities is becoming the trend. This means that outsourcing gives time to firms that are issued with the responsibility of brand management, product differentiation, and marketing while outsourcing ensures that companies indulge in complications of the bottling process for products.
Strategic Benefits
From the potential investors’ perspective, investment in HCCB provides a great opportunity to either gain an entry to the promising segment, namely the beverage industry or expand their presence in it. It is also a chance to partner with one of the most recognizable global companies and utilise their huge portfolio of products and market share, including the famous Coca-Cola brand.
